For large shipping companies dealing with trade wars and slowing global growth, conditions seem to have deteriorated as 2019 ended.
Global Freight Forwarder and Logistics Service Provider Expeditors International said Friday that it expects operating income to fall between $ 177 million and $ 183 million in the fourth quarter.
CEO Jeffrey Musser cited trade disputes and slowed growth for a number of economies. The report comes a day after the CSX railroad reported a 7% drop in freight it transported during the last months of the year.
“We’ve seen year-round effects of these market conditions, but the pace at which these changes took place dramatically accelerated in the fourth quarter,” Musser said. “We know that this environment will change over time, as always in the past.”
Shares of Expeditors International of Washington Inc. dropped 5% with the opening bell.
Transport companies are the worst performers in the market. Shares in freight, rail and shipping companies are sold.
JB Hunt Transport Services Inc., a truck company, reported earnings well below industry expectations on Friday, according to a study by Zacks Investment Research. Shares in that company are 3% lower.
FedEx reported last month that its profit fell 40%, hurt by higher costs, a shorter holiday season, and its attempt to break ties with Amazon.com. It also lowered earnings expectations.
Michelle Chapman, The Associated Press
